The UK benchmark index has advanced in today’s session, boosted by easing worries over the trade tension between the US and China. The FTSE 100 index is on track to end both June and the second quarter higher.
FTSE 100 gains ground
As of 12:02 BST, the Footsie had added 52.05 points to stand 0.68 percent higher at 7,667.68. The blue-chip index has advanced, finding support in an EU deal on migration, as well as easing worries over the US-China trade tensions which weighed on investor sentiment earlier in the week.
“The FTSE 100 has managed to claw its way higher over the past four days, and is now poised to break above 7,696 and move on to challenge downtrend resistance around 7,720,” Chris Beauchamp, market analyst at IG, commented in a note, adding that a close above that line would target the 7,800-point level, and then 7,900 points, while a move below 7,620 points “would suggest the sellers are back in control, and would head towards 7,500”.
In individual movers, BAE Systems (LON:BA) has been one of today’s most prominent Footsie risers as it secured a near £20-billion deal to build warships in Australia, beating Italy’s Fincantieri SpA and Spain’s Navantia SA for the contract. The group’s shares are changing hands 2.34 percent higher at 646.80p.
Index to post gain this quarter
The Footsie remains on track for a gain for June, while the quarter is on track to be the index’s best since 2010’s third quarter, according to Reuters.
The newswire quoted Mike van Dulken, head of research at Accendo Markets, as pointing to a combination of helpful factors such as the pound retreating since a high in April as well as a rise in the oil price.
“The FTSE isn’t UK Plc - there’s so much international exposure,” he pointed out.
The FTSE 100 was 0.77 percent up at 7,674.30 points as of 12:43 BST on Friday, 29 June 2018.